Bank of America Overdraft Limits, Fees and Protection

Overdraft Apps » Bank Overdraft Policies » Bank of America Overdraft Limits, Fees and Protection
Bank of America FeesCostMaximum Overdrafts Per DayMaximum Daily Cost
Overdraft Fee$102$20
Insufficient Funds Fee$00$0
Linked Account Transfer Fee$00$0

Note that beginning in May 2022, Bank of America removed its linked account transfer fees and NSF fees and lowered the overdraft fee from $35 to $10.

tweet about Bank of America lowering overdraft fees

Have you ever been one day from payday when all your bills are due? This can lead to unpaid bills, credit problems, and other major financial issues. With modern banking, we’re protected from unforeseen circumstances that affect our ability to pay bills. This is called overdraft protection.

Essentially, if you are automatically charged for a bill, but don’t have the money in your bank account, the bank will loan you the money for a fee. However, you must be careful with overdraft fees. One overdraft fee can offset your entire budget and, after just a few days, can accrue into hundreds of dollars.

That’s why it’s imperative that you know your bank’s overdraft limits, policies and fees, how to avoid them and find alternatives to access the cash you need.

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What We’ll Cover:

What Is Bank of America’s Overdraft Policy?

You’ll need to opt-in to Bank of America’s overdraft protection in order to access cash via an ATM or debit card transaction, or for a check or bill payment to be made if they would make your account negative by $1 or more. Your transaction will be declined if you do not participate in overdraft protection.

Bank of America recently reduced overdraft fees from $35 to $10 and limits overdraft fees to two per day, so you may incur up to $20 in overdraft fees per day.

Bank of America allows overdrafts on the following transactions four times a day at their discretion:

  • Checks
  • Scheduled Payments
  • Emergency Bank of America ATM Withdrawal

Bank of America allows two overdraft options for your checking account:

  • Standard – This allows Bank of America to paychecks and scheduled payments and charge you an overdraft fee.
  • Decline All – This automatically declines anything that attempts to charge your account more than there is in it.

Note that most checking accounts carry a monthly fee – the most popular account costs $12 per month, though it can be waived with a qualifying direct deposit or average balance above $1,500. Some Bank of America accounts, such as SafeBalance, have lower monthly fees but do not permit overdrafts.

Bank of America has also eliminated its extended overdraft fee. However, if your overdrawn account is not promptly returned to a positive balance, your overdraft privileges and account access may be suspended. You may also subject to collection costs and account closure if your balance remains negative for several months.

Bank of America consumer checking account website on computer screen

How Much Are Bank of America’s Overdraft Fees?

Bank of America’s overdraft fees are $10 per transaction. You may be charged for two overdraft fees per day, for a total of $20, even if you have more than two overdraft transactions processed.

This includes every time a check or scheduled payment attempts to go through. However, in the event that you need emergency cash from an ATM and must overdraw your account, you may avoid a fee by depositing the money before the end of the same business day.

What is my Bank of America overdraft limit at an ATM?

There are times when we have an emergency and just need cash. If you don’t have the money in your account but know that you will later, you may be eligible to overdraw at an ATM.

Each day, you can withdraw up to $1,500 from a Bank of America ATM. This is unaffected by whether you are overdrawing or not. So, does Bank of America let you overdraw at ATMs? Yes, but only up to your overdraft limit and each time you do, the bank will charge the $10 fee.

If you need to opt into these settings, you can overdraw at a Bank of America ATM by:

  • Visiting your local bank branch
  • Editing your overdraft settings in your mobile app
  • Editing your overdraft settings through online banking
  • Calling Bank of America

To cancel these optional ATM overdrafts, you’ll use the same process.

bank of america debit card used in a branch

Does Bank of America charge NSF Fees?

Great news – Bank of America no longer charges NSF fees on most consumer checking accounts! The fee was $35 per returned check until May of 2022, so this fee cut could give you significant savings if you bounce a handful of checks in a year.

Can You Get a Bank of America Overdraft Fee Waived?

There are circumstances when an overdraft fee is simply not your fault. If a Bank of America account holder overdraws for the first time in 30 years, they’re more likely to get the fee waived. It is standard practice to allow for one overdraft fee per year to be waived, but this is not always the case.

If you’ve overdrawn, the rules are not set in stone. Give Bank of America a call and see what they can do to help.

How to Avoid Bank of America Overdraft Fees

There’s nothing more frustrating than getting stuck in an overdraft loop with your bank. If you’ve ever overdrawn your account, and then not had the money to pay the original bill because of the overdraft fee, then you know what we mean. That’s why it’s better to just avoid overdraft fees altogether!

Here are a few ways to avoid incurring steep overdraft fees on your account with Bank of America:

Option 1: Use Bank of America Balance Assist

Bank of America’s Balance Assist provides an affordable way to borrow up to $500 whenever you need it. There is a flat $5 fee for the loan, no matter how much you borrow. Repayments are made in three equal installments over the next 90 days. For example, if you borrow $100 through a Balance Assist loan, you will have a payment of $35 due in 30 days, $35 due in 60 days and $35 in 90 days. Your repayments will total $105, which includes the $5 fee.

If you use Balance Assist, your account will be ineligible for overdraft protection, so make sure you carefully track your balance; all transactions that would take your account negative will be declined. Not all bank customers will qualify for Balance Assist, either. Your account needs to have been open for at least a year, have a positive balance, and you’ll need to pass a credit check. If you don’t meet these criteria, several money borrowing apps may be a better alternative for you. 

Option 2: Take Advantage of No-fee Overdraft Apps to borrow up to $200

using chime spotme to access overdraft

Though Bank of America has reduced its overdraft fees to just $10 for most transactions, there are plenty of no-fee overdraft apps available, such as Chime SpotMe.* As long as you have $200 or more deposited to your account each month, you’re able to overdraw your account for free!

However, Chime SpotMe doesn’t allow for a fast solution, since you have to have a history with Chime before you can overdraw. If you need cash now, keep reading for the ideal solution for your case.

You’ve got your eye on a new pair of $150 shoes that you know will look great on you, but there’s only $50 in your account. Where most banks would approve the transaction and sting you with a $35 overdraft fee (turning your purchase into a $185 transaction), SpotMe approves the transaction with no fees attached. The negative amount will be balanced by your next deposit as long as your paycheck is regularly deposited in your account.

Sick of overdraft fees? Explore SpotMe for $200 in fee-free overdrafts.

Option 3: Get Fast Cash with a Cash-Advance App like PockBox to Borrow $2,500

Hand holding phone with PockBox app

If you need quick cash but want to avoid overdraft fees, then there are cash advance apps and websites that can help!

One cash-advance app, PockBox, is above the rest, though. Through PockBox, users can borrow up to $2,500! PockBox isn’t very picky about your credit score, either.

Short-term borrowing won’t solve long-term financial problems. But this app could be ideal if you need cash quickly to solve a non-recurrent issue.

Click here for up to $2,500 in minutes.

Final Thoughts and What To Do Next…

So, now that you’ve learned the ins and outs of Bank of America’s $35 overdraft and NSF fees, you should feel more confident about keeping your account in the green.

And while it might not seem like a lot of money, it can add up faster than you think. So remember, when you need to avoid overdraft fees and stay under your overdraft limit with Bank of America, you can:

Nobody wants to pay overdraft fees, but luckily Bank of America has various options to help you. Keep our tips in mind, and you can rest easy knowing overdraft fees won’t get the better of you.

BONUS: Put $200 in your pocket FAST here 💰⚡

Watch: Bank of America slashes overdraft fees

*Chime SpotMe eligibility requirements and overdraft limits: Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Spending Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Friends transfers, or Chime Checkbook transactions. See Terms and Conditions.
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

WAIT! High overdraft fees aren’t the only way Bank of America is costing you money.

With inflation overheating, you’ve probably heard that interest rates are climbing sharply. That means that for the first time in years, it’s a great time to shop around for a high interest savings account.

Bank of America savings accounts currently pay just 0.04% APY1 as of 11/22/2022. That means that if you have $2,500 in a savings account, you’d earn just $1.01 after one year! Move those hard-earned savings to an FDIC-insured bank paying 3.00% APY and you’d earn $76.13 after one year, and some banks now pay even higher rates!

Don’t let your hard-earned savings sit there doing next to nothing. Check out the rates that you can earn at other banks:

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